Posts Tagged ‘Prosper’

Prosper CEO Steps Down

Prosper announced today that Chris Larsen is stepping down from his position as CEO of the company. He will be replaced by Dawn Lepore, former CEO of Drugstore.com. Larsen will continue on in his role as Chairman. As the founder and first CEO of the company, Larsen first opened Prosper’s doors in 2006. After a temporary shut-down by the SEC in 2008-2009 for selling unregistered securities, Prosper changed it business model, relaunched and has grown quickly. The company now has 70 employees and reported nearly 200% annual growth in loans originated through its platform in 2011 and February loan originations increased 290% from the same period last year. Increased borrower and investor demand for affordable financing alternatives and higher returns have helped fuel gains at the P2P lending pioneer. Since its inception, the company has facilitated the funding of more than $314 million in P2P consumer loans.

Larsen is stepping aside so the company can put in place a CEO with more experience in overseeing a larger, more established company. Lepore is a former CEO of drugstore.com and vice chairman of The Charles Schwab Corporation, who will serve as interim CEO.

“As Prosper continues to achieve incredible growth, now is the time to embrace the next phase of the company’s evolution,” said Larsen. “As Chairman, I look forward to working closely with the executive team to build a truly innovative consumer credit company.”

Prosper Announces Rate Discounts for Repeat Borrowers

Prosper announced a series of changes in October to increase loyalty among existing and previous borrowers on their platform. Repeat borrowers show a lower rate of default, so they’ve created an incentive to bring back more of them.

Repeat borrowers will now see improved Prosper Ratings, which will lower their APR over prior loans. Prosper uses its own rating system – encompassing credit score, debt-to-income ratio, and other factors – to determine a borrower’s APR.

Here is a table illustrating the loan rate discounts for repeat borrowers:

Borrowers become eligible to take a second loan as soon as 6 months after their first loan, as long as they have a successful on-time payment track record. To apply, Prosper borrowers simply sign-in to their account, enter the terms of their next loan and see their new rate.
The process is also much faster for repeat borrowers: less verification is typically required and Prosper investors fund these loans more quickly.

Separately, APRs for first-time borrowers rated AA, D, and E were also reduced.
You can find a complete list of Prosper’s rates and fees here